C.H. ROBINSON WORLDWIDE INC (CHRW) Stock Fundamental Analysis
USA - NASDAQ:CHRW - US12541W2098 - Common Stock
153.99 USD
-0.89 (-0.57%)
153.99 USD
0 (0%)
Overall CHRW gets a fundamental rating of 5 out of 10. We evaluated CHRW against 23 industry peers in the Air Freight & Logistics industry. While CHRW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CHRW is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CHRW had positive earnings in the past year.
CHRW had a positive operating cash flow in the past year.
CHRW had positive earnings in each of the past 5 years.
In the past 5 years CHRW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CHRW (11.48%) is better than 91.30% of its industry peers.
CHRW has a Return On Equity of 32.31%. This is amongst the best in the industry. CHRW outperforms 91.30% of its industry peers.
CHRW has a better Return On Invested Capital (19.35%) than 91.30% of its industry peers.
CHRW had an Average Return On Invested Capital over the past 3 years of 23.45%. This is significantly above the industry average of 11.57%.
The last Return On Invested Capital (19.35%) for CHRW is well below the 3 year average (23.45%), which needs to be investigated, but indicates that CHRW had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.48% | ||
| ROE | 32.31% | ||
| ROIC | 19.35% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)23.45%
ROIC(5y)21.78%
1.3 Margins
CHRW's Profit Margin of 3.64% is fine compared to the rest of the industry. CHRW outperforms 78.26% of its industry peers.
In the last couple of years the Profit Margin of CHRW has declined.
With a decent Operating Margin value of 4.90%, CHRW is doing good in the industry, outperforming 78.26% of the companies in the same industry.
In the last couple of years the Operating Margin of CHRW has declined.
Looking at the Gross Margin, with a value of 16.70%, CHRW is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
In the last couple of years the Gross Margin of CHRW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.9% | ||
| PM (TTM) | 3.64% | ||
| GM | 16.7% |
OM growth 3Y-2.93%
OM growth 5Y-3.65%
PM growth 3Y-10.41%
PM growth 5Y-6.96%
GM growth 3Y4.57%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CHRW is creating value.
CHRW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHRW has less shares outstanding
Compared to 1 year ago, CHRW has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of CHRW is 1.45, which is an excellent value as it means it would take CHRW, only 1.45 years of fcf income to pay off all of its debts.
CHRW's Debt to FCF ratio of 1.45 is amongst the best of the industry. CHRW outperforms 95.65% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that CHRW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, CHRW perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
Although CHRW does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | N/A |
ROIC/WACC2.3
WACC8.42%
2.3 Liquidity
A Current Ratio of 1.59 indicates that CHRW should not have too much problems paying its short term obligations.
CHRW has a Current ratio of 1.59. This is in the better half of the industry: CHRW outperforms 60.87% of its industry peers.
A Quick Ratio of 1.59 indicates that CHRW should not have too much problems paying its short term obligations.
CHRW has a better Quick ratio (1.59) than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.77% over the past year.
CHRW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.49% yearly.
The Revenue has decreased by -7.08% in the past year.
Measured over the past years, CHRW shows a small growth in Revenue. The Revenue has been growing by 2.97% on average per year.
EPS 1Y (TTM)33.77%
EPS 3Y-10.66%
EPS 5Y1.49%
EPS Q2Q%9.37%
Revenue 1Y (TTM)-7.08%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-10.93%
3.2 Future
CHRW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.76% yearly.
The Revenue is expected to grow by 1.70% on average over the next years.
EPS Next Y11.59%
EPS Next 2Y12.31%
EPS Next 3Y12.44%
EPS Next 5Y7.76%
Revenue Next Year-8.25%
Revenue Next 2Y-2.48%
Revenue Next 3Y0.62%
Revenue Next 5Y1.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.37, which means the current valuation is very expensive for CHRW.
Compared to the rest of the industry, the Price/Earnings ratio of CHRW is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.10, CHRW is valued at the same level.
With a Price/Forward Earnings ratio of 27.13, CHRW can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHRW indicates a somewhat cheap valuation: CHRW is cheaper than 65.22% of the companies listed in the same industry.
CHRW is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.37 | ||
| Fwd PE | 27.13 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CHRW.
69.57% of the companies in the same industry are more expensive than CHRW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.22 | ||
| EV/EBITDA | 21.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHRW does not grow enough to justify the current Price/Earnings ratio.
CHRW has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CHRW's earnings are expected to grow with 12.44% in the coming years.
PEG (NY)2.62
PEG (5Y)20.44
EPS Next 2Y12.31%
EPS Next 3Y12.44%
5. Dividend
5.1 Amount
CHRW has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.63, CHRW pays a better dividend. On top of this CHRW pays more dividend than 82.61% of the companies listed in the same industry.
CHRW's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
The dividend of CHRW has a limited annual growth rate of 4.17%.
CHRW has been paying a dividend for at least 10 years, so it has a reliable track record.
CHRW has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.17%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CHRW pays out 50.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
CHRW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.26%
EPS Next 2Y12.31%
EPS Next 3Y12.44%
153.99
-0.89 (-0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners99.14%
Inst Owner Change0.4%
Ins Owners0.57%
Ins Owner Change-0.78%
Market Cap18.18B
Revenue(TTM)16.50B
Net Income(TTM)600.07M
Analysts74.55
Price Target140.77 (-8.58%)
Short Float %6.56%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend2.5
Dividend Growth(5Y)4.17%
DP50.26%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.36%
Min EPS beat(2)5.59%
Max EPS beat(2)9.13%
EPS beat(4)4
Avg EPS beat(4)7.6%
Min EPS beat(4)5.59%
Max EPS beat(4)9.13%
EPS beat(8)7
Avg EPS beat(8)6.68%
EPS beat(12)8
Avg EPS beat(12)1.75%
EPS beat(16)10
Avg EPS beat(16)3.46%
Revenue beat(2)0
Avg Revenue beat(2)-3.41%
Min Revenue beat(2)-4.11%
Max Revenue beat(2)-2.72%
Revenue beat(4)0
Avg Revenue beat(4)-5.28%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)-2.72%
Revenue beat(8)2
Avg Revenue beat(8)-3.36%
Revenue beat(12)2
Avg Revenue beat(12)-4.59%
Revenue beat(16)4
Avg Revenue beat(16)-3.06%
PT rev (1m)3.93%
PT rev (3m)9.85%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)5.61%
EPS NY rev (1m)0.13%
EPS NY rev (3m)4.86%
Revenue NQ rev (1m)-0.85%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.37 | ||
| Fwd PE | 27.13 | ||
| P/S | 1.1 | ||
| P/FCF | 22.22 | ||
| P/OCF | 20.47 | ||
| P/B | 9.79 | ||
| P/tB | 662.2 | ||
| EV/EBITDA | 21.25 |
EPS(TTM)5.07
EY3.29%
EPS(NY)5.68
Fwd EY3.69%
FCF(TTM)6.93
FCFY4.5%
OCF(TTM)7.52
OCFY4.89%
SpS139.76
BVpS15.73
TBVpS0.23
PEG (NY)2.62
PEG (5Y)20.44
Graham Number42.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.48% | ||
| ROE | 32.31% | ||
| ROCE | 24.21% | ||
| ROIC | 19.35% | ||
| ROICexc | 20.17% | ||
| ROICexgc | 46.97% | ||
| OM | 4.9% | ||
| PM (TTM) | 3.64% | ||
| GM | 16.7% | ||
| FCFM | 4.96% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)23.45%
ROIC(5y)21.78%
ROICexc(3y)25.06%
ROICexc(5y)23.32%
ROICexgc(3y)62.88%
ROICexgc(5y)54.03%
ROCE(3y)30.15%
ROCE(5y)28.01%
ROICexgc growth 3Y0.83%
ROICexgc growth 5Y-1.15%
ROICexc growth 3Y-4.51%
ROICexc growth 5Y-1.82%
OM growth 3Y-2.93%
OM growth 5Y-3.65%
PM growth 3Y-10.41%
PM growth 5Y-6.96%
GM growth 3Y4.57%
GM growth 5Y-1.58%
F-Score8
Asset Turnover3.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 1.45 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 69.62% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.63% | ||
| Profit Quality | 136.39% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | N/A |
F-Score8
WACC8.42%
ROIC/WACC2.3
Cap/Depr(3y)99.97%
Cap/Depr(5y)86.13%
Cap/Sales(3y)0.47%
Cap/Sales(5y)0.41%
Profit Quality(3y)150.71%
Profit Quality(5y)108.59%
High Growth Momentum
Growth
EPS 1Y (TTM)33.77%
EPS 3Y-10.66%
EPS 5Y1.49%
EPS Q2Q%9.37%
EPS Next Y11.59%
EPS Next 2Y12.31%
EPS Next 3Y12.44%
EPS Next 5Y7.76%
Revenue 1Y (TTM)-7.08%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-10.93%
Revenue Next Year-8.25%
Revenue Next 2Y-2.48%
Revenue Next 3Y0.62%
Revenue Next 5Y1.7%
EBIT growth 1Y18.66%
EBIT growth 3Y-11.13%
EBIT growth 5Y-0.79%
EBIT Next Year20.61%
EBIT Next 3Y10.67%
EBIT Next 5Y6.83%
FCF growth 1Y-39.81%
FCF growth 3Y160.19%
FCF growth 5Y-11.11%
OCF growth 1Y-38.96%
OCF growth 3Y73.8%
OCF growth 5Y-9.8%
C.H. ROBINSON WORLDWIDE INC / CHRW FAQ
What is the ChartMill fundamental rating of C.H. ROBINSON WORLDWIDE INC (CHRW) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CHRW.
What is the valuation status of C.H. ROBINSON WORLDWIDE INC (CHRW) stock?
ChartMill assigns a valuation rating of 3 / 10 to C.H. ROBINSON WORLDWIDE INC (CHRW). This can be considered as Overvalued.
What is the profitability of CHRW stock?
C.H. ROBINSON WORLDWIDE INC (CHRW) has a profitability rating of 7 / 10.
What is the financial health of C.H. ROBINSON WORLDWIDE INC (CHRW) stock?
The financial health rating of C.H. ROBINSON WORLDWIDE INC (CHRW) is 6 / 10.
Can you provide the dividend sustainability for CHRW stock?
The dividend rating of C.H. ROBINSON WORLDWIDE INC (CHRW) is 5 / 10 and the dividend payout ratio is 50.26%.